Question

In which of the market structure AR > MR?

विकल्प

• perfect competition

• monopoly only

• both monopoly and monopolistic competition

• monopolistic competition only

Answer 1

Both monopoly and monopolistic competition

Explanation:

In both monopoly and monopolistic competition, the firms face downward-sloping demand curves. To sell additional units, they must lower the price, which causes average revenue (AR) to be greater than marginal revenue (MR).